Alec Hogg: The Reddit Trading Mob are targeting financial pros – and winning big

Kevin Shames of Bright Light Solar (above) visited us yesterday for an interview ahead of Monday's kickoff of the company's R50m capital raise. With a 19%pa after-tax return and the possible end of SA's 12J tax incentive scheme which makes it possible, feedback from our community suggests Shames should expecting brisk demand on Monday.

Also read: Alec Hogg: Covid cloud's silver lining

By law, the amount of equity on offer cannot be increased. Covid-19 has contracted the capital raise to R35m less than each of the past two years. Shames says once the R50m has been reached, the offer will close. So if you want in, best to fill in the forms over the weekend and get the transfer done.

After the interview, Kevin shared the latest drama on Wall Street where small investors are giving professionals a rogering (see WSJ story below). Banding together through social media, they target bombed-out companies where the pros have large short positions – selling stock they don't own in anticipation of profiting by later picking up the shares even cheaper.

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